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PENSIONS

Defined Contribution Plan.

A defined contribution plan is a type of retirement plan where you build up your pension pot using your own contributions as well as your employers contribution. Money contriubuted through an employer is usually deducted from your salary before it is taxed. On top of this, investment returns and tax reliefs may also be added. 

The money you recive at the end of the plan can vary depending on a number of factors some being the amount paid in, age of which you choose to retire and the overall performance of the invesment fund.

 

Defined Benefit Pension Plan.

A Defined Benefit Pension Plan is a pension plan in which the the amount you are paid out is dependent on how many years you have worked for a certain employer and your salary that you earned. With a defined benefit pension plan you recieve a secure income for life which increases each year and is passed on to your spouse dependents or civil partner when you die.

Personal Pension Scheme.

A personal pension scheme, sometimes called a personal pension plan, is a UK tax-privileged individual investment vehicle, with the primary purpose of building a capital sum to provide retirement benefits, although it will usually also provide death benefits. The pension pot is built up through the contributions you make as well as investment returns and tax reliefs. 

The fund is typically invested in shares and stocks as well as other investements with the overall goal of growing the fund over the period of time before you retire. It is helpful to note that value of the investments may rise and fall over the period until you retire.

Stakeholder Pension Scheme.

Stakeholder Pension Schemes are a form of denfined contribution personal pension. They are a flexible way to build up retirement income with low contributions and capped charges. They are designed to be availabe to everyone whether your employeed, self-employeed or not working.

Similary to the rest of the schemes your money is typically invested in shares and stocks as well as other investments with the overall goal of growing the fund over the period of time before you retire. The investment may rise and fall over the period until you retire.

Self-invested Personal Pension (SIPPs).

A self-invested personal pension is the name given to the type of UK government-approved personal pension scheme, which allows individuals to make their own investment decisions from the full range of investments approved by HM Revenue and Customs. It works similarly to that of a standard personal pension with the main difference being that a SIPP is for more flexible with the investements you can make.

 

National Employment Savings Trust.

The National Employment Savings Trust is a defined contribution workplace pension scheme in the United Kingdom. It was set up to facilitate automatic enrolment as part of the government's workplace pension reforms under the Pensions Act 2008.